Adult Social Care in Shropshire: Government Funding

I beg to move,

That this House has considered Government funding for adult social care in Shropshire.

It is a pleasure to serve under your chairmanship, Mr Stringer. Before I start to outline the concerns we have about Government support for paying for adult social care costs in Shropshire, I will put forward two historical contexts to try to explain to the Minister a little as to why and how we got into this situation.

In 2004, the Labour-controlled Shropshire Council increased council tax in one year by 16.4%. That was the year before my hon. Friend the Member for The Wrekin (Mark Pritchard), my right hon. Friend the Member for Ludlow (Philip Dunne) and I were elected for the first time. I am sure they will recall, as I do, the palpable anger, fear and frustration of many people on low fixed incomes in the face of that massive tax increase. When our party came into office, we incentivised councils to freeze council tax because there had been so much frustration and such a backlash against the massive increases, not only in Shropshire, but in Labour-controlled councils up and down the country where there had been double-digit increases in council tax.

Our local council, which became Conservative in 2005, decided to dutifully follow the advice and froze council tax, not just for one year, but for seven years in a row—clearly to the delight of local ratepayers. The council is now telling me that the Government have not adequately filled the shortfall in revenue that it inevitably had to face as a result of the freezing of council tax. The Minister may correct me if I am wrong, but my understanding from Shropshire Council officials is that the additional support that was envisaged to come from Government tapered off quickly, leaving the council without additional support of, it now estimates, in the region of £20 million per annum.

Labour shadow Ministers always criticise repeated references to their management and stewardship of the economy, but let us not forget that in the good times the Labour party, when it was in office, borrowed £50 billion a year, sold off our gold reserves at rock-bottom prices and put all these new hospitals on private finance initiative contracts, with the result that we will pay exorbitant interest rates for decades.

When the financial crash came in 2008, the kitty was bare. I am not ashamed of repeatedly referring to that. People forget about it, but the Minister will remember the sheer gravity of the situation when we came to office. As a nation, in 2009-10, we were borrowing £152 billion a year.

I commend my hon. Friend for securing this important debate. Does he agree that it is not only about the financial pressures on Shropshire Council but the domino effect of the under-provision of social care in Shropshire on the acute trust, and how that affects A&E waiting times? Finally, does he agree that there needs to be cross-party consensus and working together nationally? We do not need another review; we have had lots of those. We know what the problem is. We now need solutions, and that has to be done on a cross-party basis, but quickly.

I thank my hon. Friend and neighbour for that intervention. I could not agree more.

When we came into office, we of course had to rein in expenditure, and all Government Departments had to have cuts. The cuts to local government have, of course, adversely affected our council. I am pleased that the country’s annual deficit is now below £28 billion a year, down from the £152 billion a year that we inherited. However, now that we are getting the finances under control in a more sustainable way, I urge the Minister to take the message back to the Treasury that we need to increase public funding of our councils, so that they can start to meet the huge rise in demand for adult social care in our county. I will explain why Shropshire is uniquely affected.